The World Bank has urged the Nigerian government to shield its poorest citizens from the effects of surging inflation and prioritize reforms that promote job creation and economic resilience.

In its April 2025 Poverty and Equity Brief for Nigeria, the World Bank warned that inflation, worsened by recent economic reforms, has pushed millions—especially in urban areas—into poverty.

“Labour incomes have not kept up with inflation, pushing many Nigerians, particularly in urban areas, into poverty,” the report stated.Since 2018/19, an estimated 42 million Nigerians have fallen into poverty, bringing the total number of poor people to over half the country’s population.

“More than half of all Nigerians (54 percent) are estimated to live in poverty in 2024,” the World Bank noted.The Tinubu administration’s economic reforms—such as fuel subsidy removal and floating the naira—have spurred inflation.

In March 2025, Nigeria’s inflation rate rose to 24.23%, up from 23.18% in February. Although food inflation slightly eased, core inflation accelerated to 24.43%.While the government has rolled out temporary cash transfers targeting 15 million households, the World Bank said the programme’s implementation has been “slow.”

The Bank emphasized that “short-term interventions need to be complemented by economic diversification that grows the non-oil sector and creates private sector jobs,” alongside stronger investments in health, education, and infrastructure.

It also called for better use of fiscal savings from the petrol subsidy reform to strengthen social protection and human capital. “Improving the effectiveness and efficiency of public investments is especially important in the context of limited fiscal space,” the report added.

The Bank further highlighted the persistent regional inequality in poverty, with northern regions recording a 46.5% poverty rate compared to 13.5% in the south based on the latest household survey from 2018/19.